Klondike Te-Au

KLONDIKE TE PROPERTY

Location

Saguache County, CO (USA)

METALS

Te/Ag/Au

OWNERSHIP

FTEL Option to acquire 100%

Status

Status Exploration

GRADES

Surface & mine dump sample grades up to 3.3% Te (33,000 ppm), 33.7 g/t Au, 364.8 g/t Ag

Exceptional Tellurium Prospect

Due to the property’s exceptional tellurium grades, Klondike was considered one of First Solar’s top tellurium prospects worldwide. First Solar planned to use Klondike as a potential primary source of tellurium for manufacture of the company’s cadmium-telluride (CdTe) solar panels. When First Solar decided to cancel their tellurium mining initiative, the property was purchased in 2013 by the geological team leading the company’s property acquisitions.

First Solar performed geophysics, sampling, drill targeting, and permitting from 2009 to 2011, then abandoned their global Te exploration program before drilling the identified Klondike targets. First Tellurium acquired an option to purchase the property from First Solar’s former team, who are now managing the upcoming exploration program at Klondike.

Klondike is located 10 miles (16 km) from the small town of Saguache and is easily accessible via paved and gravel roads. Most exploration work can be performed year-round.

The Colorado Geological Survey (CGS), in partnership with the Colorado School of Mines, reported on First Solar’s exploration at Klondike in the 2015 Colorado Mineral and Energy Industry Activities 2014-2015 publication. In particular, the CGS noted:

“Surface sampling by First Solar, Inc. in 2006 found very high tellurium grades of up to 3.3% (33,000 ppm), along with locally high gold grades. Tellurium grades at Klondike were the highest encountered in the company’s nationwide exploration program.”

Key Project Attributes

33,300 ppm ^{(3.33%) Tellurium}

33.7 g/t ^Gold

364.8 g/t ^Silver

in surface and mine dump samples.

650 x 100 m

geophysical anomaly identified in 2011, indicating an attractive target at shallow depths.

Two or more

silicified pipes characterized by native gold and tellurium, and silver + base metal tellurides.

2 x 1 km

envelope of strong hydrothermal alteration in Tertiary volcanic rocks.

Regional Geology and Mining

Klondike is located in a region containing several large, well-known mining districts and many smaller districts. Famous epithermal districts of the San Juan Mountains have produced millions of ounces of silver and gold, as well as base metals. Creede, the largest volcanic-hosted epithermal silver-gold district in Colorado, lies 45 miles (72 km) southwest of Klondike. The large Summitville mine, active into the 1990s, is 57 miles (92 km) to the southwest. Cripple Creek, still being mined by Newmont, has produced over 23 million ounces of gold since 1890 from a tellurium-rich, diatreme-hosted deposit and is 68 miles (110 km) northeast of Klondike.